Glanbia has confirmed that it will pay its milk suppliers 31c/L, including VAT, for January manufacturing milk supplies.
It is the first co-op to set a milk price for January.
Glanbia Ingredients Ireland (GII) has increased its base price for January by 1c/L to 31c/L including VAT for manufacturing milk at 3.6% fat and 3.3% protein.
Glanbia Chairman Henry Corbally said that there remains significant uncertainty in the global dairy market outlook.
“The Board will continue to monitor markets on a monthly basis,” he said.
Lakeland Dairies has also increased its January milk price by 1c/L, the co-op confirmed in a statement today.
Lakelands suppliers will receive a base price of 31.28c/L, including VAT, for January milk.
Last week, IFA National Dairy Committee Chairman Sean O’Leary said that the rise in the Ornua Purchase Price Index (PPI) justifies calls for further milk price increases.
O’Leary was speaking following the announcement by Ornua of a 1.6 point increase in its PPI to 105.4 points.
This is the equivalent to a milk price of 29.8c/L plus VAT or 31.4c/L including VAT, according to Ornua.
These figures confirms the IFA’s view that at least a 1c/L price increase is fully justified on January milk, O’Leary said.
“Most co-op boards will be meeting this week and next, to examine milk prices payable for January.
“They must make sure the new increased 5.4% VAT rate benefits the farmers fully, and pass back a fully justified increase of at least 1c/L, to support their milk suppliers’ essential income recovery before peak.”